CDS spreads slashed as EU emergency measures kick in

The cost of insuring sovereign debt has fallen dramatically across the euro area as the markets take stock of the European Union's emergency loan package, agreed early this morning. The cost of five-year credit default swap (CDS) protection on Greek sovereign debt was slashed in early trading from 915.6 basis points at the close of trading on Friday to 532.2bp as of 10:00 BST. CDS spreads also fell across Portugal, Spain, Ireland and Italy, the sovereigns considered most at risk of contagion